We are a leading provider of asset finance solutions designed for those in the agricultural business in .
Asset finance can aid your investment decisions and help many in the agricultural sector have access to the equipment and machinery they need, regardless of cash flow.
We provide flexible finance options to those in the agriculture sector to help with the purchase, lease, or loan of agricultural machinery, equipment, and even renewable energy solutions.
Working in the farming industry can be tough and expensive, as you have to deal with many unpredictable external events, such as market fluctuations and new technology, which is why you may be needing financial support.
If you are looking for financial aid for an agricultural business, then you have come to the right place. Please contact the team to learn more.
Asset finance is a type of loan used by UK farming businesses to buy assets such as farm machinery, new equipment, and even renewable energy tools such as solar panels without impacting their budget drastically.
It is a form of a finance lease that we can provide to the UK farming industry to help businesses get access to what they need without going over budget.
Agricultural finance works by allowing the business to pay a set amount towards the cost of typical agriculture assets, such as new machinery, over an extended period instead of paying outright.
Spreading the cost of farming assets is ideal for those in the agriculture sector who have tight margins of profit and cannot extend their budget.
This kind of finance is considered an alternative business loan and is used in many sectors, including the agricultural sector.
Agriculture finance can be used to fund a range of machinery and equipment that can aid your business.
Opting to hire purchase machinery that can improve food profitably, reduce carbon emissions, and generally make your job easier is a great way to keep your business moving forward without going over budget.
Our solutions have been used to hire purchase a range of machinery across agricultural businesses, including the following:
Robotic milking machines
Automatic feeding machines
Our agriculture finance solutions can also be used alongside the NFU Net Zero target to fund energy-efficient options, such as:
Ground source heat pumps
LED anaerobic digestion
All of these can be used to help achieve NFU net targets and are being encouraged in all sectors.
Our team can provide in-depth knowledge when it comes to applying for the right funding package, and as our company is business-forward, we aim to provide the best solution every time.
The application process for agriculture asset finance typically involves the following steps:
Preparation: Before applying for agriculture asset finance, it's important to have a clear understanding of the equipment and machinery needed for the agricultural operation, as well as the costs involved. You may also need to provide a business plan, tax returns, and other financial statements as part of the application process.
Research: Research the different types of agriculture asset finance options available, and compare the terms and conditions offered by different lenders to find the best solution for your needs.
Loan Application: Submit a loan application to your chosen lender, including all of the required financial and business information, as well as any supporting documentation.
Underwriting: The lender will review your application and perform a credit check, as well as an assessment of the financial viability of the agriculture operation.
Approval: If your application is approved, the lender will provide you with a loan offer, including the terms and conditions of the loan.
Closing: Once you have reviewed and accepted the loan offer, you will need to sign the loan agreement and provide any additional information or documentation required by the lender.
Funding: The lender will then release the funds to you, allowing you to purchase the equipment and machinery needed for your agriculture operation.
The information required for an agricultural asset finance application can vary depending on the lender and the specific loan product being applied for, but generally includes:
Business Information: Details about the agricultural operation, including the name of the business, the type of operation, the number of employees, and the length of time in business.
Financial Information: This may include tax returns, balance sheets, profit and loss statements, and other financial statements. You may also need to provide information about your current assets, liabilities, and cash flow.
Equipment Information: Information about the equipment and machinery needed for the agricultural operation, including the make, model, and cost of each asset.
Loan Information: Information about the loan amount being requested, the purpose of the loan, and the repayment terms.
Personal Information: Personal information about the owner(s) of the agricultural operation, including their name, address, and credit history.
There are several types of asset finance available for the UK farming industry, including:
Hire Purchase is type of financing allows farmers to purchase equipment and machinery over a fixed period of time, with regular payments being made to the lender.
At the end of the agreement, the farmer owns the assets outright.
Leasing finance allows farmers to use equipment and machinery over a set period of time, with the lender owning the assets.
Leasing can be structured as a capital lease or an operating lease, depending on the specific needs of the farmer.
Loan Finance is a type of financing involves borrowing a lump sum of money to purchase equipment and machinery, with the assets serving as collateral for the loan.
Loan finance can be structured as a secured or unsecured loan, depending on the specific needs of the farmer.
Rent-to-Own is a type of financing allows farmers to rent equipment and machinery over a set period of time, with the option to purchase the assets at the end of the agreement.
It's important to work with a financial advisor to determine the best financing solution for your farming operation, and to understand the terms and conditions of the loan before signing the agreement.
Asset finance can offer several benefits for the agriculture industry, including:
Increased Cash Flow: By financing equipment and machinery, farmers can conserve their working capital, freeing up cash flow for other important business expenses.
Up-to-Date Equipment: By financing the latest equipment and technology, farmers can stay competitive and improve their operational efficiency.
Tax Benefits: Depending on the specific financing arrangement, farmers may be able to claim tax deductions for loan interest and depreciation of the assets.
Preserved Credit Lines: By financing assets rather than using other forms of financing, such as a line of credit, farmers can preserve their credit lines for other important business expenses.
Fixed Payments: Asset finance typically involves fixed payments over a set period of time, allowing farmers to budget and manage their finances more effectively.
Customisable Financing Options: Asset finance can be structured to meet the specific needs of the farmer, including the repayment terms, the loan amount, and the type of financing arrangement.
Asset finance can also have some disadvantages for the agriculture industry, including:
Higher Costs: Asset finance can be more expensive than other forms of financing, with higher interest rates and fees.
Risk of Repossession: If the farmer is unable to make their loan payments, the lender may have the right to repossess the assets.
Maintenance and Repair Costs: The farmer may be responsible for maintenance and repairs on the assets, which can be a significant added expense.
Asset finance in the agriculture industry is regulated by financial regulatory bodies, such as the Financial Conduct Authority (FCA).
Asset finance can be a great solution for those in the agricultural sector as it gives you access to the tools you need now without impacting your future profits.
If you are looking for financial support like this, then please contact the team today to see how we can help.